Wells Fargo mortgage buybacks could top $1.8 billion

CHARLOTTE, North Carolina (Reuters) - Wells Fargo & Co may have to buy back an additional $1.8 billion in toxic mortgages from outside investors on top of claims it already received, the fourth-largest U.S. bank by assets said in a securities filing on Friday.

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Reuters - Wells Fargo & Co may have to buy back an additional $1.8 billion in toxic mortgages from outside investors on top of claims it already received, the fourth-largest U.S. bank by assets said in a securities filing on Friday.

(Reuters) - Wells Fargo & Co on Friday reported higher second-quarter profit on strong mortgage banking income as borrowers continued to refinance their homes at low rates. The nation's fourth-biggest bank said net income was $4.6 billion, or 82 cents a share, compared with $3.9 billion, or 70 cents a share, in the same period a year earlier. The San Francisco-based bank is the largest U.S. mortgage lender. (Reporting By Rick Rothacker in Charlotte, North Carolina; editing by John Wallace)

Wells Fargo just released its third-quarter results. Wells Fargo posted earnings per share of 99 cents per share. Third quarter revenue came in at $20.5 billion. On average, analysts expected the bank to report adjusted earnings per share of 97 cents on revenue of $21.02 billion, according to data compiled by Bloomberg. From the release:

The Mole submits: The surprise decision by the PBoC to raise rates by 25bps (I’d now expect tomorrow's GDP and CPI numbers to be upside surprises !) led to de-risking across the board and US stocks suffered their biggest setback in 2 months. The dollar (the $ index DXY +1.7 percent) was the main beneficiary as it had its biggest gain in 6 months. Commodities had a knee-jerk move lower with Gold -2.5 percent, Crude -4 percent, and Copper -3 percent.